Stock Analysis

Analyst Estimates: Here's What Brokers Think Of Wal-Mart de México, S.A.B. de C.V. (BMV:WALMEX) After Its Third-Quarter Report

BMV:WALMEX *
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Wal-Mart de México, S.A.B. de C.V. (BMV:WALMEX) shareholders are probably feeling a little disappointed, since its shares fell 4.6% to Mex$57.08 in the week after its latest quarterly results. Revenues of Mex$230b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at Mex$0.74, missing estimates by 4.8%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Wal-Mart de México. de after the latest results.

Check out our latest analysis for Wal-Mart de México. de

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BMV:WALMEX * Earnings and Revenue Growth October 26th 2024

Taking into account the latest results, the current consensus from Wal-Mart de México. de's 14 analysts is for revenues of Mex$1.04t in 2025. This would reflect a decent 11% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 16% to Mex$3.55. In the lead-up to this report, the analysts had been modelling revenues of Mex$1.04t and earnings per share (EPS) of Mex$3.57 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of Mex$75.49, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Wal-Mart de México. de, with the most bullish analyst valuing it at Mex$85.00 and the most bearish at Mex$58.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Wal-Mart de México. de shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Wal-Mart de México. de's past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 8.8% growth on an annualised basis. That is in line with its 7.9% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 8.0% per year. So although Wal-Mart de México. de is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at Mex$75.49, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Wal-Mart de México. de. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Wal-Mart de México. de going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Wal-Mart de México. de that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.